Most Recent Documents for Wayne Early/middle C

Supply and Demand
Demand
Free Market- Where sellers and buyers voluntarily exchange (with as little
government intervention as possible)
Demand is the WANT and ABILITY to buy an item
Law of Demand- As price I am willing to pay goes UP, my Demand for the
p

Saving
Saving
Should be looked at as a regular expenditure.
Reasons for saving:
For emergencies
To put towards an expensive item
For luxuries (like vacations)
Saving is good for economy:
Money available for others to invest/spend
Money businesses can borr

Planning/Budgeting
Planning/Budgeting
Personal budget:
A careful record of all the money you earn and spend
Includes
Income: money you earn
Expenses: the money you spend (or save)
Balance: amount of money left over after expenses are
subtracted
Surplus- m

Managing Your Money
Managing Your Money
Consumer: someone who buys a product or service
Have rights and responsibilities
2 types of income:
Disposable Income
Discretionary Income
money that remains after all taxes on it have been paid
the money remaining

Making Economic Decisions
Making Economic Decisions
Trade-offs: the alternatives that one faces when they decide to do one thing
rather than another
Individuals, businesses, and societies make trade-offs.
Opportunity Cost: the cost of the next best use of

Investments
Investments
Stocks
When you buy shares of stock you are buying pieces of ownership in
a corporation.
Value fluctuates with success of the business
Some companies pay dividends:
You get a piece of the companys profits for owning some of
the com

Fiscal and Monetary Policy
Fiscal Policy
Adjusting govt. taxing and spending to address economic downturns.
In theory, the best thing to do in a recession is to both cut taxes and increase
govt. spending.
Why cut taxes? This gives people more income to

Economic Growth and Capitalism
Economic Growth
Occurs when total output of goods/services increases over time
Productivity: efficient use of resources
measure of amount of output produced by given level of inputs
in specific period of time
Specializat

Basics of Economic Systems
How Economic Systems Work
We choose between:
Needs: things required for survival
Wants: things we desire and make life more comfortable; like
entertainment, vacations, etc.
Economics:
the study of how we make decisions in a worl